S&P lowers Pitney Bowes

S&P said it lowered the corporate credit and issue-level ratings to BBB- from BBB on Pitney Bowes Inc.

The outlook is stable.

The downgrades reflect recent weak performance in the company's software business within its digital commerce business, S&P said.

The downgrades also consider an expectation that the transition to operating stability will take longer than previously forecast, the agency said.

S&P also said it forecasts more gradual improvements to operating performance in 2016 and 2017 compared with previous forecasts, which included an expectation for stronger digital business operating performance in 2016.

The agency said it expects leverage to subside from slightly higher than 2.5x in 2016 to the 2x to 2.5x range in 2017.

The company’s fair business risk profile reflects its position as the leading provider of postage-metering equipment and related solutions in the United States, S&P said.

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